The giant tech did not renew the contract it had with FedEx last June for its express air shipping within the United States.
Amazon will manage its express deliveries internally from now on. The tech giant banned merchants who sell via its portal from shipping with the American packaging company, FedEx, for prime shipments, according to The Wall Street Journal.
Last June, the tech giant opted not renew the contract it held with FedEx for air deliveries, for the express delivery services that it offered throughout the United States. The decision is made in the midst of Christmas campaigns, declaring an open war that leaves both companies fighting for the leader position in the home delivery sector in the US.
Until now, third-party sellers vending their products on Amazon had the liberty to select which shipping company would be responsible for managing home deliveries, including FedEx, UPS, USPS and Amazon’s own delivering services. The split with FedEx contributes a supplementary influence to the e-commerce titan, as it has been building its own delivery network via planes, trucks and vans.
Amazon will manage home deliveries coinciding with the highest demand throughout this era
“While this decision affects a very small number of shippers, it limits the options for those small businesses on some of the highest demand shipping days in history, and may compromise their ability to meet customer demands and manage their businesses,” said a FedEx spokesperson.
The ban to use FedEx’s services does not currently have an expiration date. Amazon, for its part, has been limited to specifying that it will not resume until FedEx deliveries “improve”. The forecasts for the logistic company will eventually reach up to 100 million of packages being delivered per day by 2026 in the US market.